Capital Preservation Pool
This short term investment option holds cash equivalents and FDIC insured bank deposits. A portion of the pool is allocated to Community Development Financial Institutions (CDFIs) that lend to nonprofits, small businesses and individuals in low-income communities.

Impact Investments

Direct investments in equity, debt or guaranties of social enterprises, structured as program-related or mission-related investments, are possible though SVCF’s Customized Philanthropy Services. Our expert staff will assist you in assessing these options, conducting due diligence and monitoring results. Learn more by contacting us at donate@siliconvalleycf.org or 650.450.5444.

Mission-related investments seek to generate a measurable beneficial social or environmental impact alongside a market-rate financial return. These investments are generally made in for-profit social enterprises as part of a mission-aligned investment portfolio or strategy.

Program-related investments or “PRIs” are defined by the IRS as an investment in which the primary purpose is to significantly further a charitable purpose. Financial gain cannot be a significant purpose, and funds cannot be used to influence legislation or fund political activities. The recipient of a PRI may be a nonprofit or for-profit social enterprise. Unlike a mission-related investment, PRIs are not expected to produce market-rate returns.

Resources

The Eye Fund: a Program-Related Investment Case Study
This case study demonstrates the strategic use of a program-related investment by the Bernard A. Newcomb Foundation, a supporting organization of SVCF, to reduce blindness in developing countries by expanding treatment capacity of affordable eye hospitals.

Fund Good Jobs: a Recoverable Grant Case Study
This case study highlights the use a recoverable grant by Woody Shackleton, through his donor advised fund at SVCF, to recycle capital to small business owners in Oakland, California.

Driving Impact Through Donor Advised Funds
This article by Bert Feuss, Senior Vice President of Investments, discusses the growing practice of impact investing from donor advised funds and the important role of financial advisors and community foundations in helping clients achieve their philanthropic goals.